Ares Management secures record €30bn for private direct lending strategy

Ares Management has successfully raised €30bn for its private direct lending strategy, marking the largest fundraise in the firm’s history for this asset class.

The strategy focuses on providing bespoke financing solutions to middle-market companies across North America and Europe.

The €30bn was raised from a diverse global investor base, including sovereign wealth funds, pension plans, insurance companies, and family offices. This record-breaking amount underscores the growing demand for private lending as traditional banks reduce their exposure to middle-market financing. Investors were drawn to Ares’ track record of delivering consistent, risk-adjusted returns in private credit markets.

Ares will deploy the capital across a wide range of industries, targeting sectors with strong growth potential. The strategy aims to address market dislocations and meet the increasing borrower demand for flexible financing. Key features include customised loan structures and support for businesses navigating complex financial environments.

Moreover, the strategy capitalises on Ares’ scale and expertise, leveraging its established presence in private credit markets. The firm plans to focus on direct lending opportunities that offer attractive yields and stable cash flows, catering to middle-market businesses that face challenges accessing traditional bank financing.

Ares Management’s private credit business has grown significantly over the years, benefiting from the global shift towards private markets. With this latest fundraise, the firm strengthens its leadership in private credit, while continuing to innovate and expand its offerings to meet market demands.

Source: Business Wire

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